Microsoft Word - 310_quiz6_s16

1. Determine the actual number of fold rollers produced during March 2016.
2. Compute the following variances for March 2016 (indicate whether each is favorable or unfavorable): a. direct materials price variance (based on purchases) b. direct labor efficiency variance c. variable overhead spending variance d. fixed overhead spending variance e. fixed overhead volume variance
3. Make all appropriate summary general journal entries to account for (a) the purchase of direct materials during March 2016, and (b) direct labor costs incurred during March 2016. Miter, Inc. has a perpetual inventory system.

ACCT 310 - Quiz 6 Spring 2016 Miter, Inc. manufactures parts used by printing companies and uses a standard cost system. The following data are shown on the standard cost card for one of the company's products, the fold roller: Direct material 2.5 kgs. @ $3.00 per kg. Direct labor 0.5 hrs. @ $12.00 per hr. 6.00 Variable overhead 0.5 hrs. @ $4 per hr. 2.00 Fixed overhead 0.5 hrs. @ $7 per hr. 3.50 Total standard cost $ $ 7.50 19.00 Overhead costs, both variable and fixed, are applied to production on the basis of direct labor hours. The fixed overhead rate of $7 per direct labor hour is based on budgeted monthly activity of 3,100 direct labor hours. Additional data on fold roller operations for March 2016 are as follows: Direct materials purchased, 20,000 kgs. at a cost of $2.80 per kg. Direct materials used, 16,500 kgs. Direct labor recorded, 3,020 hours at $13 per hour. Variable overhead costs incurred, $12,500. Fixed overhead costs incurred, $20,300. The direct material quantity variance was $4,500 U. Required: 1. Determine the actual number of fold rollers produced during March 2016. 2. Compute the following variances for March 2016 (indicate whether each is favorable or unfavorable): a. direct materials price variance (based on purchases) b. direct labor efficiency variance c. variable overhead spending variance d. fixed overhead spending variance e. fixed overhead volume variance 3. Make all appropriate summary general journal entries to account for (a) the purchase of direct materials during March 2016, and (b) direct labor costs incurred during March 2016. Miter, Inc. has a perpetual inventory system. The quiz is due and will be collected at the beginning of class (2:20 p.m.) on Thursday, April 28. No quizzes will be accepted before this time unless prior approval is received from and arrangements are made with the instructor. No late quizzes will be accepted. Provide complete, systematic, and neat documentation of all computations. No credit will be given for figures requiring computations unless adequate documentation of those computations is displayed within the quiz solution. Prepare the solution, including supporting computations, with either computer spreadsheet software or word-processing software. Use one-inch margins and a 10-point font. Copying any portion of another person's computer file is cheating. Submit a hard copy of your solution rather than the computer file. Staple together multiple pages. 1 Because the corrected quiz will not be returned to you before Examination 3 on Tuesday, May 3, please keep a copy of your solution so that you can check it against the solution that will be posted on the course website at approximately 4:00 p.m. on April 28. The posted solution will provide a variance analysis and appropriate journal entries for four input categories: direct materials, direct labor, variable overhead, and fixed overhead. 2